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Market Cap

HK$12.4b

Last Updated

2021/05/07 10:31 UTC

Data Sources

Company Financials +

Executive Summary

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in People’s Republic of China. More Details


Snowflake Analysis

Overvalued with weak fundamentals.


Similar Companies

Share Price & News

How has SOHO China's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 410 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 410's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

410

0.3%

HK Real Estate

-0.7%

HK Market


1 Year Return

-23.8%

410

6.3%

HK Real Estate

25.7%

HK Market

Return vs Industry: 410 underperformed the Hong Kong Real Estate industry which returned 7.9% over the past year.

Return vs Market: 410 underperformed the Hong Kong Market which returned 27.5% over the past year.


Shareholder returns

410IndustryMarket
7 Day0.9%0.3%-0.7%
30 Day-1.3%-1.4%-1.6%
90 Day0.9%7.1%-2.9%
1 Year-23.8%-23.8%11.5%6.3%30.6%25.7%
3 Year-39.0%-39.8%-6.0%-17.9%3.5%-7.5%
5 Year6.0%-35.4%69.3%34.4%62.2%34.7%

Long-Term Price Volatility Vs. Market

How volatile is SOHO China's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SOHO China undervalued compared to its fair value and its price relative to the market?

19.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 410 (HK$2.37) is trading above our estimate of fair value (HK$0.31)

Significantly Below Fair Value: 410 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 410 is poor value based on its PE Ratio (19.1x) compared to the HK Real Estate industry average (7.4x).

PE vs Market: 410 is poor value based on its PE Ratio (19.1x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 410's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 410 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Future Growth

How is SOHO China forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 410's earnings are forecast to decline over the next 3 years (-1.1% per year).

Earnings vs Market: 410's earnings are forecast to decline over the next 3 years (-1.1% per year).

High Growth Earnings: 410's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 410's revenue (6.7% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).

High Growth Revenue: 410's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 410's Return on Equity is forecast to be low in 3 years time (1.5%).


Past Performance

How has SOHO China performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 410 has a large one-off gain of CN¥1.1B impacting its December 31 2020 financial results.

Growing Profit Margin: 410's current net profit margins (24.4%) are lower than last year (71.8%).


Past Earnings Growth Analysis

Earnings Trend: 410's earnings have declined by 8.5% per year over the past 5 years.

Accelerating Growth: 410's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 410 had negative earnings growth (-59.7%) over the past year, making it difficult to compare to the Real Estate industry average (5.9%).


Return on Equity

High ROE: 410's Return on Equity (1.4%) is considered low.


Financial Health

How is SOHO China's financial position?


Financial Position Analysis

Short Term Liabilities: 410's short term assets (CN¥5.2B) do not cover its short term liabilities (CN¥6.0B).

Long Term Liabilities: 410's short term assets (CN¥5.2B) do not cover its long term liabilities (CN¥27.2B).


Debt to Equity History and Analysis

Debt Level: 410's debt to equity ratio (49.6%) is considered high.

Reducing Debt: 410's debt to equity ratio has increased from 48.3% to 49.6% over the past 5 years.

Debt Coverage: 410's debt is not well covered by operating cash flow (1.1%).

Interest Coverage: 410's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Dividend

What is SOHO China current dividend yield, its reliability and sustainability?

1.01%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 410's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 410's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 410's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 410's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 410 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 410's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.8yrs

Average management tenure


CEO

Marita Pan (55 yo)

14.17yrs

Tenure

CN¥2,851,000

Compensation

Mrs. Zhang Xin Pan, also known as Marita, serves as the Chief Executive Officer of SOHO China Limited since March 28, 2007. She Co-founded Soho China Ltd. in 1995. She serves as an Executive Director of SO...


CEO Compensation Analysis

Compensation vs Market: Marita's total compensation ($USD441.13K) is about average for companies of similar size in the Hong Kong market ($USD620.46K).

Compensation vs Earnings: Marita's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 410's management team is seasoned and experienced (12.8 years average tenure).


Board Members

Experienced Board: 410's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SOHO China Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SOHO China Limited
  • Ticker: 410
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$12.427b
  • Shares outstanding: 5.20b
  • Website: https://www.sohochina.com

Number of Employees


Location

  • SOHO China Limited
  • Chaowai SOHO, Tower A
  • Floor 11
  • Beijing
  • 100020
  • China

Listings


Biography

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in People’s Republic of China. It also operates serviced hotels. S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 10:31
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.